Confluent, Inc. (NASDAQ:CFLT) Q2 2023 Earnings Call Transcript

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And you know the result of that has, I think has driven some of the success of Confluent Platform in addition to the public sector thing which we alluded to. It’s not a bad thing for us. You know it is our strategy to be able to span all these environments and connect them and we think that strength in OneDrive, strengthen the other and so we’re happy to serve the customers in the environment that they’re using. That’s very much our approach on the product side. But I do suspect that yes, were we to see kind of an acceleration and a little bit of a loosening of the purse strings and the IT budgets. I do think you’d see a little bit faster push in the Cloud and if that speculation were correct then that would probably drive our Cloud business further.

Steffan Tomlinson: Yes. And as it relates to the second question, just around use cases, there’s the traditional set of use cases that we’ve talked about a lot, but I’d like to just focus a moment on some of the Gen AI, AI and ML use cases that we’re seeing. Customers are really starting to do and have been doing a number of things. First is, they’re building real time context data and using that to power chat interfaces with their customers. You’ve seen them also provide product recommendations based off of demographics and buying patterns. And then we’ve also seen technology that deploys AI assistance to drivers and helping with fleet logistics. And then finally, I would say customers are also building a real time ML and data science pipeline to power their new fraud detection platform.

So there are lots of use cases that companies have already been using our technology for, but then with the all the advances that are being made, they’re going to be using our technology even more so in the future.

Kash Rangan: Good luck with the next venture. Thank you so much. Great working with you, Steffan

Steffan Tomlinson: Thank you very much. Appreciate it.

Operator: Thanks, Kash. We’ll take our next question from Raimo Lenschow with Barclays followed by Deutsche.

Raimo Lenschow: Hi, thank you. And all the best for me as well Steffan and Rohan. And two quick questions. First, if you think about the Cloud momentum that you have at the moment, what are you seeing in terms of pipeline here, in terms of what’s going to drive the growth going forward? Is that going to be more like existing use cases with heavier consumption or do you see like early signs of more people going back to Kash’s questions of people just thinking about like, okay, I need to next use case, the next use case, next use case, what are you seeing there? That’s first question. The second one is with the recent changes at New Relic, is there any update you have there in terms of the how that’s going, because that’s obviously a big reference customer for you and it’s important for you? Thank you.

Jay Kreps: Yes. You know, to the first question, I want to make sure I understand it right. You’re saying what’s kind of the pattern of consumption that we’re seeing? Is it more use case driven or is it more, something else? Help me understand the kind of nuance that you’re drawing.

Raimo Lenschow: Yes, so it’s more like are they — is it more use cases are the streams getting bigger or is it just like a whole new project in different departments of the different — of the customers?

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